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JPMorgan Q4 Profit Rises, But Revenues Miss Estimates; Stock Down

jpmorgan chase 041317 15jan19 lt

JPMorgan Chase & Co. (JPM) reported Tuesday a profit for the fourth-quarter that grew 67 percent from last year. It took a one-time charge, as a result of the U.S. tax reform in the prior year. Net revenue for the quarter rose 7 percent from the previous year. Revenue for the quarter missed analysts' expectations.

In the pre-market trade, JPM is trading at $98.36, down $2.58 or 2.56 percent.

Net income for the fourth-quarter was $7.07 billion, an increase of 67% from $4.23 billion in the previous year. The prior year result included a $2.4 billion reduction to net income as a result of the enactment of the Tax Cuts & Jobs Act or "TCJA".

Net income applicable to common stockholders for the quarter was $6.64 billion or $1.98 per share, compared to $3.77 billion or $1.07 per share last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $2.21 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

The provision for credit losses was $1.5 billion, an increase of $240 million from the prior year. The increase was driven by higher net reserve builds in the current quarter in the Consumer and Wholesale portfolios.

Net revenue for the fourth-quarter was $26.11 billion, up 7 percent from $24.46 billion last year. On a managed basis, net revenue was $26.8 billion, up 4% from the prior year. Analysts expected revenues of $26.9 billion for the quarter.

Net interest income was $14.5 billion, up 9%, driven by the impact of higher rates as well as loan growth, partially offset by lower Markets net interest income. Non-interest revenue was $12.3 billion, down 1%, with no notable drivers on a Firmwide basis.

Non-interest expense was $15.7 billion, up 6%, predominantly driven by investments in the business, including technology, marketing, real estate and front office hires, as well as auto lease depreciation, partially offset by the absence of the prior-year FDIC surcharge.

Consumer & Business Banking net revenue was $6.6 billion, up 18%, predominantly driven by higher net interest income as a result of higher deposit margins and balance growth.

Banking revenue was $3.3 billion, up 6%. Investment Banking revenue was $1.7 billion, up 3%, with overall share gains, reflecting higher advisory fees predominantly offset by lower underwriting fees.

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